Dec 8, 2023

The U.S. economy saw stronger-than-expected job growth of 199,000 in November.

Video transcript

The November jobs report just came out and it shows that the US added 100 and 99,000 jobs last month back November, of course, with the unemployment rate edging lower to 3.7% you know what that means? Well, we had a slight sell off in bonds. We had the 10 year yield slightly up, but yet Bitcoin me. So joining us now to discuss how all this is impacting the crypto markets is 21 co CEO and co-founder Hany was. Good morning, honey. Welcome. Thanks for having me. I'm glad to see you again. So, what are you, uh What are you making of this lack of reaction almost? It seems to the jobs report. Uh yet some little bit of a reaction here going on in the uh, in the bond market. So I think there are a number of different factors happening here. One, the resiliency of the American economy and uh the potential chance for a soft or softer landing is clearly a positive sentiment and that's part of what you're seeing with respect to crypto. Um You can't ignore the excitement that people have uh over the Bitcoin ETF applications and what that could mean for institutional money coming into this space. Uh crypto people, we often think we've seen real money invested in crypto. We have not, the institutions have merely dipped their toes. Um And once something like the United States moves on this, we should expect to see a lot more institutional uh adoption and institutional purchases, net new buyers as well as increased regulatory pressures on a number of different jurisdictions around the world that are waiting and seeing what the United States will do. Yeah, we, we aren't seeing that sort of risk capital go into crypto yet. But, um, a a and, you know, we're seeing some of it obviously and, and we and people have used uh crypto particularly Bitcoin as a measurement of risk almost the same way that they use the, the vix back in the day. I don't know. People still use the vix, who knows? But, uh, it, it, there's still does this damper at, in any point with a, a little bit. It's again, it wasn't that far off the predicted job uh number, but is there a potential that, well, you know, what rates are, are, are kind of high right now, the excitement for taking on risk when you have such a high hurdle rate, uh might not be there. It, it's, it is a sort of enthusiasm that institutions are gonna go into this even with an ETF is there a potential that that's being a little bit overblown in my humble and personal opinion. I, I think we're under appreciating it actually, uh, because there are a lot of buyers that have wanted for various reasons, invest in crypto to have even a few basis points in it that have been prohibited from doing so because it did not exist as a security within the confines of their own rules and regulations. I think that's part of what we're seeing here is the general excitement of about a lot of this. And I'll give you, I'll give you a stat that can really clearly illustrate this. 75% of our year to date influx have occurred in the last 60 to 90 days and that's, that's not normal. Uh But that's a sign of the change in sentiment across primarily institutional crowds. I wanna ask you um now about Ether and defi assets, your humble and personal opinion, uh Bitcoin Little move this morning, but Ether and defi assets up uh over 4%. Why do you think that is? Well, you can, you can also look at the layer twos with solo and avalanche having even more profound changes. Uh It, it, it's a matter of the um the maturity of the market and some of the more recent tendencies, Bitcoin and Ethereum get a lot more institutional traffic and less people that are trading off of them in the same ways as some of the smaller assets. So this is part of why the behavior is a little bit different. And then considering the revenue potential of the Ethereum market and the defi market and what we are already seeing in terms of both Ethereum fees as well as defi and what's being built on top of it. There's this sentiment that Ethereum is even more underpriced today relative to its progress than Bitcoin is. And that could be uh equating to net new buyers for Ethereum over Bitcoin because they may be perceiving it as a higher growth target. Has there been a change in how people perceive these ALTs these, the, the what used to be known as the Ethereum Killers back when I was a child? Um What's happened uh to, to their narrative, what are people betting on now? I think people thought for the longest time that this would be a winner, take all um or even winner, take most um market. And if, if you remember for many, many years, we had this uh flipping idea of waiting to see when Ethereum beats Bitcoin. And over the years, I think there's been a gradual transition that this may look closer to an Apple app store where there are thousands and tens of thousands of successful apps. And even though the biggest ones may generate a lot of the lion's share of revenues or users, there's clearly space for a lot of winners here. And so that coupled with what is very real tangible progress on the technical side for the L two S, meaning more developers, more infrastructure, better developing tools, etcetera. The combination of those two things I think is what's making these uh assets more um exciting and, and attractive. They're growing up in a way similar to Bitcoin and Ethereum. Now, if you watch the show, you know, I'm gonna ask for a price prediction. What's your year end price prediction for uh Bitcoin? There were some talks about a Santa rally maybe Bitcoin hitting 57,000 before the end of the year. What do you think? I would welcome that news. I think in the dozen times that, that I've been here, I have been asked the price maybe 10 of those dozen times and I've never given a price. I think we will beat the all time highs. Um, and I think we are starting to see signs that the bear market is near its end, but I would, I would warn everyone to still be careful. We're not out of the woods yet. Um, we still haven't cleaned up the space 100% but we're very, very close. I think we beat the all time high within the next 12 to 18 months. And that's sort of where I'm at. We'll always ask for the price prediction even if you don't give one. But you kind of did there. He, I know we're getting somewhere here. We are getting somewhere. Everyone is smiling a little bit more this month. That is clear. Lastly, uh are there any alt coins you're watching? We spent so much of our time talking about Bitcoin and Ether as we see this price action, but uh any alt coins on your radar. So in Europe, we just listed um optimism and arbitra and that was coming from customer and client demands because a lot of people and a lot of developers are already using them. And so it's not just about the L two S but it's about deeper in the market that we're looking at. Very brand new and exciting developments. What is the next Solana, what is the next avalanche in addition to being ever more excited about Solana avalanche, Ethereum Bitcoin and the rest of the bigger caps. All right, honey. Thank you so much for joining the show again. If we don't see you before the end of the year, we hope you have a very happy holidays, happy holidays. Thanks for having me talk soon. That was 21 co CEO and co-founder, Henny Rashwan.

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